What do you mean by feasibility study? explain its significance in project formulation ​

A feasibility study is a comprehensive analysis performed to determine the viability of a project. It considers all related factors such as economic, technical, legal, and scheduling aspects. The main aim is to identify the potential challenges and opportunities, strengths and weaknesses, resources required, and the prospects for success.The significance of a feasibility study in project formulation is immense. It serves as a crucial tool for decision making by providing a clear insight into whether a project is profitable or not. The study helps to forecast the success of the project by evaluating its compatibility with the existing legal and economic environment. It identifies the practicality of a business proposal or a new idea highlighting any potential difficulties. Finally, it assists in aligning the project's objectives with the organization’s goals enhancing its chances of success. It's important to note that the feasibility study should be conducted before initiating the project to avoid unnecessary losses in time, resources, and money. This process should involve meticulously examining and evaluating each aspect related to the project – from technical feasibility, legal obligations, market conditions and availability of resources to assessing the organization's ability to carry out such a project within the prospected time frame and budget. The final decision to proceed with the project or not depends on the results of the feasibility study. Concepts used: Project feasibility study, project formulation, strategic decision making.